Overall turnover to be 20 per cent higher than current year: VS Gadhvi, MD, GMDC

VS Gadhvi, MD, GMDC, talks to ET Now, on the latest numbers of his companies and the future plans. Excerpts:

How has Q3 shaped up for you in terms of revenue and PAT growth, 11%, is it satisfactory? What have been the highlights this quarter?

The results of the third quarter have already come in. The position is quite strong. Compared to the quarter on quarter comparison, we stand around 10-11% higher than the last year's turnover. So, overall we hope to continue this trend in the last quarter also, so it could be an increase of about 18-20% of the turnover at the end of the financial year.

What has been the contribution to revenues from the lignite, bauxite and iron ore segments?

As far as Gujarat is concerned, 85-90% is lignite mining, it was the same situation in the last quarter also. It was about 92% of lignite mining and remaining was the bauxite and power, etc. The same thing will continue. Next year, we may increase on bauxite and fluorspar also. That could be a marginal increase in bauxite. It will be a substantial increase in fluorspar.

Nalco JV is fairly important for you. When do you start that?

Nalco... we had asked for the EoIs to some 7-8 good reputed parties. They were in the queue. They had bid for the project. Finally, the one party, which is Nalco a Government of India undertaking, has shown their interest and have finally, in financial bid, come up with the specific proposal.

They have suggested some deviations in the project and we are considering it. Then we will need the government's approval, all the clearances, etc., if we get that by the end of this financial year, then the project work can start in the beginning of the next financial year.

It will be a 12000-15000 crore project. It will be a good boost to the value addition of the Kutch non-plant lignite, which will be very good for the region, and for the value addition of the GMDC product as well.

More importantly, could you give us a guidance on profits and revenue growth expected in FY12-13?

Next year, our overall turnover should be at least 20% higher than the current year. We will also invest in the solar and wind power sector, which we have already started doing. Most of the part would flow from the lignite and subsequently from bauxite and fluorspar mining.